10th Parliament· 154 sittings on record · 30,475 speeches · latest 10 June 2026

The Hon. R.M. Jayawardhana - Deputy Minister of Trade, Commerce and Food Security

Jathika Jana balawegaya· Monaragala· 19 March 2025 ·Debate: Committee of Supply: Appropriation Bill 2025 - Head 116 and Related Heads (Trade, Commerce, Food Security)

Public FinanceAgricultureCorruption & Governance Reform
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The Deputy Minister said the Ministry of Trade, Commerce and Food Security has consolidated 17 institutions to improve food security, market access and daily consumer welfare, while correcting past misuse of public resources. He alleged widespread irregularities in cooperatives, Lanka Sathosa, Economic Centres, Mahapola, STC and related entities, citing uncollected cooperative loans, missing audit files, undervalued asset sales, loss-making rental arrangements, unusable imported rice-milling machines and missing public funds. He stated that investigations are under way and that the Ministry will standardize governance and refocus institutions on their intended functions, including fair prices for farmers and consumers and support for vulnerable students.

Verbatim record (translated)

Machine-translated from Sinhala / Tamil / English

¶ 01 Madam Deputy Chairperson, this Ministry must be highly operational, directly linked to the daily lives of citizens. Our foremost aim is to build a sustainably developed Sri Lanka—starting with people’s lives.

¶ 02 We must ensure food security and enable people to access suitable food, at the right time, continuously, and affordably, via appropriate laws, regulations, orders, agreements, and trade arrangements.

¶ 03 This Ministry was formed by bringing together 17 institutions previously split across several ministries, to find coherent answers to people’s problems. We examined how these institutions had functioned and found many operated as personal business fiefdoms—resources privatized, rules bent or rewritten for personal gain. We are addressing this.

¶ 04 On cooperatives: they own properties nationwide. In Sri Jayawardenepura Kotte, “Baduwatta” lands lots 53P and 39P have been taken over through political interference by relatives of former Prime Minister Dinesh Gunawardena. Similarly, while Janaka Ranawaka’s father was a cooperative security officer, a portion was taken for a political office; now his son resides there. Institutions under the Ministry and cooperative societies are paying rentals on such lands.

¶ 05 In Thambuttegama, the petrol shed owned by the Rajanganaya Multi-Service Cooperative became, in effect, a property of powerful politician Bertie Premalal Dissanayake. Across many places, cooperative properties have been seized. In the Western Province alone, over Rs. 500 million has been stolen from cooperative societies and rural banks. We are investigating.

¶ 06 From 2010 to 2024, large loan portfolios were issued via MPCSs. Over Rs. 1 billion remains uncollected. Additionally, Rs. 392 million was lent from additional funds, accruing Rs. 221 million in interest—Rs. 614 million in uncollected loans. Of 121 audit files examined, 60 are missing. A cooperative revolving fund disbursed Rs. 501 million—nothing has been recovered. Ad-hoc constitutions were engineered specifically to facilitate theft.

¶ 07 On Lanka Sathosa: historically, it was turned into a political fief—appointments made for political ends, assets used in elections. There were court cases; some escaped. Sathosa had 42 lorries sold below value causing Rs. 210 million loss; properties were rented at low rates causing monthly losses (e.g., Rs. 6 million), and the “Mega House” arrangement causing Rs. 12 million per month loss. In total, low rentals caused roughly Rs. 60 million monthly loss.

¶ 08 A striking case: about 10–15 years ago, 137 rice milling machines were imported for women’s societies. These machines could not mill local varieties (they produced powder), were returned and stored, now rusting—essentially scrap iron. The loss is Rs. 219.6 million. We tried to repair or retrofit with rubber rollers; not feasible. We may have to sell them as scrap.

¶ 09 We have 18 Economic Centers. Their purpose—linking farmers to markets—was good. Some (e.g., Keppetipola, Dambulla, Thambuttegama) function to purpose, but many do not. In some, only retail shops operate; in Embilipitiya, fertilizer was stored there; in some towns, big shops use the center as warehouses. We will standardize governance across centers so they fulfill their purpose—ensuring fair prices to farmers and consumers.

¶ 10 Mahapola: it greatly supported underprivileged university students. However, funds were misused. At the Ja-Ela trade exhibition, former Minister Nalin Fernando intervened; Rs. 88.6 million was taken from Mahapola for a Mahapola exhibition, but only Rs. 53 million returned—Rs. 35 million missing. SLIT was also funded from Mahapola in the past—contrary to its core purpose.

¶ 11 STC: in 2021–2022, rice was imported. A stock worth Rs. 64 million sent to Sathosa remains “in transit”—three containers. This exemplifies the corruption and waste across institutions now consolidated under this Ministry.

¶ 12 Despite this legacy, we accept responsibility. Our aim is to provide the facilities people need to sustain daily life. We are putting proper systems in place. Some in the Opposition demand instant results—like planting a coconut today and seeking coconuts tomorrow. A country broken over 76 years cannot be rebuilt in six months. We have explained rice issues in detail many times; yet the same questions repeat. Today, instead of discussing the 17 institutions under this Ministry, some spoke without touching on the Ministry at all. We will nevertheless proceed to make this Ministry effective for the public.

¶ 13 Thank you.

Provenance

Source
Hansard, Wednesday, 19 March 2025 ·No. 1748499233099643 ·English daily/uncorrected Hansard
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Cite as: The Hon. R.M. Jayawardhana - Deputy Minister of Trade, Commerce and Food Security. 10th Parliament, Parliament of Sri Lanka. Hansard, 19 March 2025. No. 1748499233099643. Politick, https://staging.politick.io/lk/speeches/25240